Global trade can support humanitarian relief. Here's how

In 2024, nearly 300 million people worldwide will require humanitarian assistance due to conflicts, climate emergencies and other crises. The primary objective in such situations is to deliver life-saving goods swiftly and efficiently to those in need.

During the initial stages of a crisis, many jurisdictions endeavour to expedite the clearance of humanitarian goods and often waive duties. However, humanitarian efforts, such as delivering food, vaccines, mosquito nets and other life-saving items frequently encounter bureaucratic delays comparable to or even greater than those faced by commercial goods.

At the WTO Global Aid for Trade Review, held on 26-28 June, the Global Alliance for Trade Facilitation and UNICEF hosted a session where experts discussed the challenges faced by humanitarian supply chains and examined how measures to streamline commercial trade could also benefit humanitarian efforts, ensuring aid reaches communities quickly and cost-effectively. Here’s what emerged.

Digitalizing processes can drastically reduce the time and cost of moving goods. This involves using electronic formats instead of paper-based systems to expedite documentation and data exchange.

For humanitarian goods, digital solutions can simplify the cumbersome process of applying for customs duty exemptions, for example. By developing online platforms for submission and processing or connecting relevant government agencies to an existing Single Window system, delays and demurrage costs, incurred when containers are left too long in a port before being collected, can be reduced, saving valuable resources for humanitarian missions.

Digitalization requires more than just installing software; it necessitates a comprehensive overhaul of existing procedures. This includes re-engineering workflows, training of personnel and ensuring different systems and stakeholders can work together seamlessly. Data security and privacy, especially in sensitive areas like health, are also critical. Robust infrastructure and reliable internet connectivity are essential, particularly in remote or under-resourced areas.

Customs administrations often face the dual challenge of ensuring the efficient movement of goods while simultaneously enforcing the law, ensuring compliance, collecting duties and taxes and preventing smuggling. Without effective risk management systems, they often resort to inspecting every shipment, which can be inefficient for processing both humanitarian and commercial goods.

In the humanitarian context, managing exemptions related to duties is particularly challenging. These benefits can be misused by ill-intentioned parties moving commercial, illegal or counterfeit goods. Therefore, an effective risk management system is crucial. This includes enabling real-time tracking, data analysis and efficient communication between stakeholders through risk analysis software, allowing for better identification of risks, reducing unnecessary checks and expediting the clearance of humanitarian goods.

Another solution for effective risk management is the implementation of pre-arrival processing and advanced notification systems. These allow agencies to prepare for incoming shipments, reducing the time goods spend at borders by performing controls based on risk assessments. This can fast-track inspection processes for all goods, including humanitarian supplies.

Cooperation remains at the heart of humanitarian efforts. Effective collaboration between border agencies is crucial to avoid unnecessary duty payments and reduce demurrage costs. Harmonized procedures and joint operations between customs, health ministries and other relevant agencies can significantly expedite the clearance process.

The private sector also plays an indispensable role in humanitarian relief. Global logistics companies such as DHL or Maersk, with their extensive logistics expertise, are critical in managing the transportation and distribution of aid. Their involvement enhances efficiency and brings professional expertise that strengthens the overall response to crises.

Local collaboration is equally vital. Local actors understand on-ground realities and can provide insights and support that international organizations might overlook. Engaging local businesses and communities ensures that aid reaches those in need more effectively and sustainably. However, the foundation of successful collaboration is trust. Humanitarian partners must understand and respect national rules and regulations, while local authorities must recognize and uphold humanitarian principles.

Trade is often viewed through a profit-making lens, but it does not have to be this way. While commercial goods keep our economies thriving, timely delivery of humanitarian goods saves lives. Rethinking trade measures to fast-track humanitarian supplies can lead to significant positive outcomes.

Since 2022, the Global Alliance for Trade Facilitation has been working to streamline humanitarian supply chains. Partnering with UNICEF in Mozambique, the alliance has reformed the importation processes for essential vaccines and medical products, reducing processing times by 10 days, improving shipment traceability and cutting costs.

Building on this success, similar initiatives will be rolled out in 10 additional countries, ensuring children have reliable access to vaccines and supplies. Find out more here.